Cardano (ADA) is displaying increasing strength, evidenced by the formation of a bullish pattern on the 3-day chart. This marks the third consecutive bullish setup for the asset, indicating potential trend continuation.
Current Situation in Cardano (ADA)
Currently, ADA is testing its 50-day moving average (MA50), which serves as a critical resistance level. If the price breaks above this level, it could confirm the bullish setup and possibly trigger a new rise.
Breakout Targets: $0.80–$1.30
Should Cardano break above the MA50 and sustain momentum, next targets are anticipated at $0.80, followed by psychological and technical resistances at $1.00 and $1.30. These targets are based on historical resistance levels and the height of the wedge formation.
Key Levels and Risks
Traders should keep an eye on the following key levels:
* **Support Zone ($0.55–$0.56):** Previous base of a falling wedge, now a critical area for maintaining bullish structure. * **Resistance (MA50 around $0.69):** A clean break and retest above this level would validate upward targets. * **Target Levels ($0.80, $1.00, $1.30):** Key resistance points if the breakout gains momentum.
However, if ADA fails to hold above $0.55 or is rejected near the MA50, the bullish scenario may be delayed or invalidated.
Cardano (ADA) is on the verge of potential growth. Monitoring key levels and analyzing current patterns could assist traders in making informed decisions.
